

/* Generate variables needed for analysis of exclusion restriction */



use "G:\Data\Workdata\707677\Common\01Data\02STATA\panel_iv_exclusion", clear 


encode(edu_type_m1), gen(primary_school)


/* Code country of origin */

gen race=.
replace race=1 if ie_type_m1==1 // Danish
replace race=2 if ie_type_m1==2 // Foreign
replace race=3 if ie_type_m1==. // Missing

tab race, gen(racedum)



// Persons in the house 


gen house_number=.

replace house_number=1 if antpersf_d_m1==1
replace house_number=2 if antpersf_d_m1==2
replace house_number=3 if antpersf_d_m1==3
replace house_number=4 if antpersf_d_m1>3 & antpersf_d_m1!=.
replace house_number=5 if antpersf_d_m1==.


tab house_number, gen(housedum)


gen housing_missing=1 if house_number==5
replace housing_missing=0 if house_number!=5


// age 
gen age_0_40=(age0>=1 & age0<=40 & age0!=.)
gen age_41_50=(age0>=41 & age0<=50 & age0!=.)
gen age_51_60=(age0>=51 & age0<=60 & age0!=.)
gen age_61_70=(age0>=61 & age0<=70 & age0!=.)


// Attrition

gen attrition=0
replace attrition=1 if formue_real==.


// Selfemployed

gen selfemployed=1 if netovskud_real!=0 & netovskud_real!=.
replace selfemployed=0 if netovskud_real==0 & netovskud_real!=.


// Education edu_type_m1

encode(edu_type_m1), gen(edu_prior)
gen lower_secondary=(edu_prior<=2 & edu_prior!=.)
gen higher_secondary=(edu_prior==3 & edu_prior!=.)
gen university=(edu_prior>3 & edu_prior!=.)
gen edu_missing=(edu_prior==.)


// Children in the home


gen children_inhouse=1 if antboernf_m1>0 & antboernf_m1!=.
replace children_inhouse=0 if antboernf_m1==0 
replace children_inhouse=0 if antboernf_m1==. 

gen children_missing=0
replace children_missing=1 if antboernf_m1==.



// Wage 

egen timelon_groups=xtile(timelon_real_m1), nq(4) by(pyear)

replace timelon_groups=5 if timelon_groups==.  // category for missing

tab timelon_groups, gen(timelon_dum)





// Dummy for positive earnings erhvervsindk_real_w



// use means


local sumvar "erhvervsindk employed_pstill unemployed_pstill social  legmarried house passiv aktiv formue"



foreach var in `sumvar'  {

egen `var'_mean=rowmean(`var'_m1 `var'_m2 `var'_m3 `var'_m4)

}






save  "G:\Data\Workdata\707677\Common\01Data\02STATA\panel_iv_exclusion", replace









